Economists almost unanimously agree that rent control is a short term reprieve that causes long term problems.
Don’t control rents, control land values with land value taxes (not the same as property taxes)
If you take away the profit motive for owning a home, the whole current system collapses and housing returns to the price it should be based on it’s usefulness as a house not an investment.
The full context of this is economists don’t think it’s a long term solution but their other proposed solutions is even less accepted by politicians and the masses.
As such like many of the larger problems we have we’re left with a temporary solution that’s implemented long term.
When people criticize rent control at best what they’re saying is if we bottom out on a problem the only way we could go is up. Ala electing Trump.
Their other proposed solutions aren’t accepted by politicians and the masses, because there’s too many people benefitting from the system fucking the next generation to want to change it. We’re literally living in the largest pyramid scheme ever constructed.
Montreal had rent control for a long time and renting only became a problem when the bubblification of real estate got imported to Quebec from the rest of Canada.
Renting only became a problem when it became a problem elsewhere… oh… well then it looks like it didn’t work well did it.
The Canadian rental market, famously a victim of rent control.
Who said anything about the Canadian market having tried rent control?
Plenty of other places have tried and failed at it though.
And what, exactly, are the long-term problems? The most common one I’ve seen sited is that they don’t maintain properties, but there are solutions to that. Economists just don’t seem to be willing to discuss anything that isn’t some kind of private market solution.
“We can’t do anything that reduces landlord or developer profits” is trying to solve the problem with both hands tied behind your back and a ball gag firmly in place.
First, it’s Cited, not Sited.
Second, I think you misunderstood me. I’m advocating for removing their profits almost entirely, or at least the portion of profits attributed to the increase in land value that they had no part in improving.
I just think that rent controls are a stupid way to attempt to do it because they don’t apply to new units and they often have loopholes. Rent controls can also exacerbate the problem where new units get rented for much higher prices, to try to compensate for the fact that they won’t be able to increase them over time. There definitely isn’t enough supply to stop that issue happening.
We need:
-limit 1 house per family
-serious rent control
-4-storey apartments built owned by the public and cooperatives
-Stronger renter protections
-Aggressive tax on empty properties/units
Aggressive and escalating.
The longer you leave a residential property vacant, the higher the tax rate becomes.
Speculating on residential housing needs to become costly - more expensive than making it livable and available for people to live there.
Vacant House Taxes have been tried throughout Canada and are generally ineffective. They are just a distraction.
The main reason why they don’t work is fairly obvious: Why would someone own property to keep it vacant?
Sure, there are some people with vacation homes, or second homes where they frequently visit (heck, I might have to get an apartment where my office is located now we’re being forced to return to the office). Oh the Urbanity has a great video where they point out the vast majority of “Vacant Homes” are either students who don’t permanently live there, in the process of a move, under renovation, etc.
I think we also need to discount and ease new construction - NIMBY bullshit shouldn’t be allowed to prevent densification and we either need direct subsidies or material subsidies of construction materials.
When new builds are all mcmansions from developers with deep, unethical, ties to politicians it doesn’t really help much either.
Looking at you Doug Ford.
Can you explain what you mean by
-limit 1 house per family
Many of the times I’ve heard this sentiment, it’s been to either ban Mom&Pop landlords, or ban rental houses completely. These options seem to benefit potential homeowners by screwing over renters. I’m not sure if you mean something different?
“apartments built by thr public or coops” is right there. Don’t look at a package proposal and treat each part of it as unrelated or judge it in a vacuum.
I am fully supportive of public housing and coops, but that doesn’t explain how a “limit 1 house per family” rule would work or what it’s intending to achieve. If you or @Sunshine@lemmy.ca want to expand on that you can even explain it in the context of a whole system, I’m happy to hear it. I am a policy wonk and just want to understand this proposal.
I think we need a rental tax credit. Whether it’s partial or fully tax exempt, doesn’t really matter. If every renter was reporting their rent payments on their taxes it would be impossible for landlords to dodge their own taxes, thereby shifting the tax burden where it belongs.
A rental tax credit would likely result in money laundering schemes. For example you’re a Mafia boss and you purchase a building with very expensive appartment rents and people that you pay to “pay” you the rent. Then that money is magically clean and tax free
I don’t see how this would make money laundering for organized crime any easier than it is today, the tax would just be shifted to the landlord side (likely at a higher rate since they’re probably in a higher tax bracket) and off the tenant.
Right now the tenant earns money, pays income tax on that money, pays rent, and the landlord pays taxes on that money (if they’re honest and report it all) but can claim their mortgage interest as a tax deduction.
I think the tenant should be able to claim some portion of their rent as a tax deduction. It would require an official record of rent paid, which would keep the landlord honest. I’d say the mortgage interest on a rental property probably shouldn’t be tax deductible either, but even still this would have the biggest impact on those large private landlords that are often what you’d call slumlords.
Edit: I’m obviously not an expert on taxation or housing policy so if I’m wildly out of touch I’ll accept that, I just think it’s kind of bullshit that the government subsidizes the mortgages we pay for our landlords with the money we paid the government when we worked for it.
Like how Donald Trump does it?
Fwiw, rent control is fully insufficient - what you need is a completely massive supply of affordable housing built, owned and operated by the public. Nothing short of this will make a dent
Also prohibit the use of houses for
scalpingspeculation and investmentThis is only really a thing in a paradigm of housing scarcity. Can’t speculate on houses if houses are not abnormally rising in prices year over year.
The housing scarcity is the root cause, and is most effectively addressed by the aforementioned method
De Beers enters the chat
Non purpose built for rental homes should be limited to one per person. Any more than that should be hit with cumulative tax rates for each home past the first until such time as it is no longer profitable to hoard them.
Not saying people can’t own multiple homes. It just shouldn’t be so disgustingly profitable. If it’s not profitable, prices adjust accordingly.
Agreed 💯
So problem will never be solved then. Far too much vested interest in the status quo from existing landowners.
Nobody is going to build “affordable housing” unless you like living 10 hours commute from major cities. And as soon as someone builds a bullet train to shorten the commute to an hour the prices will skyrocket.
I’d advise you to avoid defeatism. This is a policy that has historically been implemented in various countries, and it can be done again if pushed for enough from the voting population.
Step one is identifying the correct solution, which we’ve now established. Step two is to spread the word about it.
So I’m going to put it a different way that you absolutely won’t appreciate but is the truth.
I’m a homeowner (single detached) that has a significant mortgage. Anything that happens to lower prices is going to negatively impact me so I don’t want change to bring property prices down now, but to have them go up as high as possible so I can sell down the road and make money.
That’s what you’re dealing with. It’s not defeatism, it’s people actively voting against and impeding stuff that will go in the direction you seem to think people want. Many do not want change in that direction at all.
Preparing for downvotes from those who don’t like cold hard truth.
Right, so I think it’s important that you understand that I’m in the very same boat - I have a mortgage and declining property values affect me quite negatively as well.
We can’t let that be a reason to perpetuate this system that leaves so many homeless and so many more in what essentially amounts to indentured servitude in the face of ever-increasing housing costs.
We’ll probably have to do some form of soft landing for the average person with a mortgage in order to not make the transition a disaster for them, but it still has to happen.
I’m actually shocked that the Financial Post said something positive on rent control. This is some alternate universe stuff. It’s typically neolib drivel.
im just sick of ppl listing rooms on craigslist for $800-1000 :/ esp when they title it misleadingly as a whole suite
We have rent control in BC (I think, unless I misunderstand), but I’d be willing to ease the restrictions a bit in exchange for vacancy control. I’ve only been in my current place for 4 years, but if I had to move (renoviction or personal use) I’d be looking at almost a 150% increase for something comparable. I know I’m not alone in that. I could handle a 10% increase per year if it meant I had the flexibility to move if I needed an upgrade or my landlord was simply being an ass.
